Operations and Supply Chain Management Commons^™

Resource Security: Competition For Global Resources, Strategic Intent, And Governments As Owners, A. Erin Bass, Subrata Chakrabarty

Marketing and Management Faculty Publications

We develop a resource security perspective by examining the resources that multinational firms acquire when investing abroad. Firms can acquire resources to increase power and decrease dependence for long-term security (exploration) or acquire resources for relatively shorter-term gains and consumption (exploitation). We find state owned enterprises (SOEs) acquire resources for exploration, and pay more for these resources than non-state owned enterprises (NSOEs). We contribute to the literature by suggesting that long-term resource security is of immediate importance to SOEs and their home countries, that ownership influences resource acquisitions, and investments can be a safeguard for the SOE’s home country’s future.